Fundamental of Tourism Management

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LESSON –1
TOURISM – CONCEPT &PERSPECTIVES
1.2 CHANGING FACETS OF TOURISM
From the very inception of life, travel has fascinated man. Travel and tourism have been important
social activities of human beings from time immemorial. The urge to explore new places within
one‘s own country or outside and seek a change of environment & experience has been experienced
from ancient times.
Tourism is one of the world‘s most rapidly growing industries.
Much of its growth is due to higher disposable incomes, increased leisure time and falling costs of
travel. As airports become more enjoyable places to pass through, as travel agency services become
increasingly automated, and as tourists find it easier to get information on places they want to visit,
tourism grows.
The Internet has fuelled the growth of the travel industry by providing on line booking facilities. It
has also provided people with the power to explore destinations and cultures from their home personal
computers and make informed choices before finalizing travel plans. With its immense information
resources, the Internet allows tourists to scrutinize hotels, check weather forecasts, read up on local food
and even talk to other tourists around the world about their travel experiences for a chosen destination.
This new trend has made the tourism job very challenging. The holiday makers want a good rate of
return on their investment. They are to be lured with value additions and improved customer service.
This also put emphasis on the regular flow of manpower with specific skills at the appropriate levels to
match and cater to global standards. The success of the hospitality industry comes from provision of
quality rooms, food, service and ambiance. There is no doubt that fitness has increasingly become a
larger part of everyone‘s life.
And business and leisure travelers alike look to maintain their fitness goals while away from home.
Awareness should be created about the environment and education. A collective effort and co-
operation with powerful networking are the need of the hour. People should be acting as the watchdogs
of the society as far as environmental issues are concerned. Eco-tourists are a growing community and
tourism promotions have to adopt such eco-practices which could fit this growing community.Another
growing trend in the tourism scene is the Incentive Market and the scope of the destination to attract
conferences and convention traffic. Here the prospects are better for those destinations where state of the
art infrastructure has been developed along with a safe and clean image.
Tourism today is much more than just developing products. It is more about quality, insightful thinking
and ability to have global information about technology, partners, contacts and responding quickly to
global and regional trends. The fundamental task before tourism promotion is to facilitate integration of
the various components in the tourism trade as active participants in the nation‘s social and cultural life.
There is a long road ahead.
All must work towards a society where people can work and participate as equal partners. Tourism
should be a vehicle for international cooperation and understanding of the various civilizations and a
harbinger of peace.
From the foregoing we can see how fast the face of tourism is changing and how challenging the job of
travel agencies is now. There is therefore a need for proper training of the personnel working in the
industry through thorough and a detailed study of the subject A unified approach to the subject is also
needed since at present people from different fields have been studying tourism from different
perspectives.
1.3 DIFFERENT PERSPECTIVES ON THE STUDY OF TOURISM
1. Geographical Perspective - from a geographer‘s perspective the main concern of tourism is to look
into aspects like the geographical location of a place, the climate, the landscape, the environment, the

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physical planning and the changes in these emerging from provisioning of tourism facilities and
amenities. A geographer feels that it is the climate, landscape or physical attributes which draw the
tourist to a destination, for example; if a person from Delhi goes to Shimla in the summer he does so
because of the cooler climate which he cannot get in Delhi
2. Sociological Perspective - From a sociologist‘s perspective Tourism is a social activity; it is about
interaction between different communities—hosts and guests—and encounter between different
cultures. This approach studies social classes, habits and customs of both hosts and guests in terms of
tourism behaviour of individuals or groups of people and the impact of tourism on society.
3. Historical Perspective - from an historian‘s perspective tourism is a study of the factors instrumental
in the initiation of tourism to a particular destination, the order of happenings leading to tourism
development, the reasons for happening of the occurrences in that order, beneficiaries of the tourist
activity and an untimely and premature identification of negative effects. For example we all know that
a lot of tourists visit Taj Mahal in Agra but a historian would be interested in studying the factors that
bring the tourist there, e.g. the architecture, the story behind the monument, or something else that draws
them there.
4. Managerial Perspective - from the management perspective tourism is an industry, and therefore
needs managerial skills in order to be properly managed. As the industry grows we see
continuous changes in various organizations and services linked with the industry, the tourism products
and so on so this approach concentrates on management activities such as planning, research,pricing,
marketing, control etc. as vital to the operation of a tourist establishment.
5. Economic Perspective – From an economist‘s perspective tourism is a major source of foreign
exchange earnings, a generator of personal and corporate incomes, a creator of employment and a
contributor to government earnings. It is a dominant global activity surpassing even trade in oil and
manufactured goods. Economists study the effects of tourism industry on the economy. This is a two
way process.
1.4 THE IMPORTANCE OF MANAGERIAL AND ECONOMIC PERSPECTIVES TO THE
STUDY OF TOURISM
Now due to higher disposable incomes, increased leisure time and falling cost of travel, the Tourism
industry has shown a very high growth and since tourism is a service industry it comprises of a number
of tangible and intangible components. The tangible elements include transport systems - air,rail,
road, water and now, space; hospitality services - accommodation, food and beverage, tours,
souvenirs; and related services such as banking, insurance and safety and security. The intangible
elements include: rest and relaxation,culture, escape, adventure, new and different experiences.
As there are number of bodies involved the need arises for a management of services related to this
industry and so the study of Tourism acquires a great practical necessity and usefulness.
Tourism industry is very fast growing and this industry involves activities and interests of Transport
Undertakings, Owners of Tourist Sites and Attractions,Various tourist Service Providers at the tourist
destinations and Central and Local Government, etc. Each of these serves both the resident population
and the tourists and their management must reconcile the needs of tourists with the needs of the resident
population. So it becomes important to study tourism from the perspective of Management, since the
management of various bodies in this industry is invaded.
1.5 TOURISM – DEFINITION AND MEANING
In India we see the origin of the concept of Tourism in Sanskrit Literature. It has given us three terms
derived from the root word ―Atana‖ which means going out and accordingly we have the terms:
Tirthatana – It means going out and visiting places of religious merit.
Paryatana - It means going out for pleasure and knowledge.
Deshatana - It means going out of the country primarily for economic gains.

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In simple terms Tourism is the act of travel for the purposes of leisure,pleasure or business, and the
provision of services for this act.
There are two important components that make up tourism:
1. The practice of travelling for pleasure.
2. The business of providing tours and services for persons travelling.
Here we are discussing the features of the above two components
The following are required, to make travel possible: (Component 1)
1. Discretionary income, i.e. money to spend on non-essentials
2. Time in which to do so.
3. Infrastructure in the form of accommodation facilities and means of transport.
Individually, sufficient health is also a condition, and of course the inclination to travel. Furthermore, in
some countries there are legal restrictions on travelling, especially abroad. Communist states restrict
foreign travel only to "trustworthy" citizens. The United States prohibits its citizens from travelling to
some countries, for example, Cuba.
There are four basic services to be provided for Tourists: (Component 2)
1. Travel Arrangements
2. Board and Lodging
3. Food
4. Entertainment
In the above paragraphs we have discussed the basic meaning of tourism and the features of the
components of Tourism.
Now we will talk about the definitions of the term tourism.
There have been a number of attempts to define tourism since the beginning of the twentieth century. It
is defined in a different manner by different people and the most widely accepted definition is the one
given by the World Travel Organization (W.T.O). This was approved by United Nations Statistical
Commission in its twenty-seventh session held from 22 February to 3 March 1993
As Per WTO
Tourism comprises the activities of persons travelling to and staying in places outside their usual
environment for not more than one consecutive year for leisure, business and other purposes.
The term ―usual environment‖ is intended to exclude trips within the place of residence, trip to the usual
place of work or education and daily shopping and other local day-to-day activities.
The threshold of twelve months is intended to exclude long-term migration.
For the distance travelled there is no consensus. It varies from at least 40 kms to at least 160kms away
from home one way for any purpose other than commuting to work.
Five main characteristics of tourism may be identified from the definition
1. Tourism arises from a movement of people to, and their stay in,various destinations.
2. There are two elements in all tourism: the journey to the destination and the stay including activities
at the destination.
3. The journey and the stay take place outside the usual place of residence and work, so that tourism
gives rise to activities, which are distinct from those of the resident and the working population of the
places, through which the tourist travels and in which they stay.
4. The movement to destinations is of temporary, short-term character, with the intention of returning to
the usual environment within a few days, weeks or months.
5. Destinations are visited for purposes other than taking up permanent residence or employment
remunerated from within the places visited.
As per WTO definition, Tourism can be classified into the following forms
Inbound tourism: Visits to a country by non-resident of that country - for example, when A American
citizen, Mr. Sam comes to India to see the Taj Mahal, he is an inbound tourist for India.

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Outbound tourism: Visits by the residents of a country to another country - ,for example when an
Indian citizen, Mr. Ram goes to America to see Hollywood , he is an outbound tourist for India
Domestic tourism: It involves travelling by the residents of the given country within their own country -,
for example, when Mr.Anil a resident of Delhi goes to see the Taj Mahal in Agra he is a
domestic Indian Tourist.
Internal tourism: It comprises of domestic tourism and inbound tourism.
International tourism: It comprises of inbound tourism and outbound tourism
CHECK YOUR PROGRESS-I
1. What are the two elements in all forms of Tourism?
2. Which of the following activities can be put under the term Tourism?
a) Ms. Tina goes to the nearby market to shop for groceries.
b) Mr. Ajit who stays in Faridabad, goes to Nehru Place to pay his phone bills.
c) Mr. Raj, a resident of Delhi, goes to Mumbai and takes up a job there.
d) Ms Sita a resident of Mumbai, goes for a weekend to Goa.
After defining the term tourism we would here like to bring out the differences between the words.
Travel and Tourism.
1.6 DIFFERENCES BETWEEN TRAVEL AND TOURISM
Though the words Travel and Tourism are synonymised and used interchangeably but Tourism is a
wider concept and encompasses a lot more than travel alone.
Travel implies journeys undertaken from one place to another for any purpose including journeys to
work and as a part of employment, as a part of leisure and to take up residence; whereas Tourism
includes the journey to a destination and also the stay at a destination outside one‘s usual place of
residence and the activities undertaken for leisure and recreation. All tourism includes some travel, but
not all travel is tourism .A person may often travel for a wide variety of purposes of which tourism is
only one. However if properly handled, a part of the travel for non tourism purposes can be motivated
into travel for tourism as an additional purpose .For example a person on a journey as a part of
employment to a place with one or more tourist attractions –like a spot of scenic beauty or historical
significance, a pilgrimage, a lake, etc. can be induced to spare some time and money for a short visit and
or stay for tourism purposes alone .In this sense every traveler is a ‗potential‘ tourist and is upto the
managers of the industry to tap this ‗potential‘ and convert the traveller into an ‗actual‘ tourist.
Some of the characteristics that distinguish tourism from travel are:
Tourism is:
1. Temporary, to distinguish it from the permanent travel of the tramp and nomad
2. Voluntary, to distinguish it from the forced travel of the exile and refugee
3. Round up, to distinguish it from the one-way journey of the migrant
4. Relatively long, to distinguish it from the recurrent trips of the holiday house owner
CHECK YOUR PROGRESS -II
1. When gypsies go from one destination to another, is that covered under travel or tourism?
2. If Mr. Ravi, working in a software company in Delhi, is transferred to Bangalore would it be covered
under travel or tourism?
3. If Mr. Ravi, who is transferred to Bangalore from Delhi, decides to go for a weekend to see the
temples in Mysore would it be travel or tourism?
1.7 DEFINITIONS
The principal character in the phenomenon called Tourism is the ‗Tourist‘ and without his being
around the tourism phenomenon is meaningless.
The term Tourist is believed to have been derived from the Latin word ‗TORNUS‘ which means a tool,
a circle or a turner‘s wheel. In the sense of the word of the origin, tourist is a person who undertakes a
circular trip, i.e., ultimately comes back to the place from where he sets about his journey.
Based on the various definitions of a Tourist here are some of the characteristics of a Tourist

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1. He takes up his journey of his own free will.
2. He takes up the journey primarily in search of enjoyment.
3. The money spent on the visit is the money derived from home, not money earned in the places of
visit.
4. He finally returns to his original starting point.
We now proceed to discuss the definition of Tourist as given by WTO.But since WTO considers a
tourist a type of a Visitor. We will first discuss the definition of a Visitor.
The WTO in a conference held in 1963 introduced the term ‗Visitor‘.
A Visitor is defined as ‗Any person visiting a country other than that in which he has his usual place of
residence for any reason other than being interested in an occupation remunerated from within the
country visited.
The term includes two types of visitors:
1. Tourist – Is a temporary visitor staying for a period of at least 24 hours in the country visited and the
purpose of whose journey can be classified under one of the following heads :
a) Leisure (recreation, holiday, health, study, religion and sport)
b) Business, family, mission, meeting.
As per the WTO‘s definition following persons are to be regarded as tourists:
i) Persons travelling for pleasure, for domestic reasons, for health etc.
ii) Persons travelling for meetings or in representative capacity of any kind (scientific, administrative,
religious etc.)
iii) Persons travelling for business purposes.
iv) Persons arriving in the course of sea cruises, even when they stay for less than 24 hours (in respect of
this category of persons the condition of usual place of residence is waived off.
However persons belonging to the following categories are not considered as tourists:
i) Persons arriving with or without a contract to take up an occupation or engage in any business activity
in that country.
ii) Residents in a frontier zone and persons domiciled in one country and working in an adjoining
country.
iii) Students and young persons in boarding establishments of schools/colleges.
iv) Travellers passing through a country without stopping, even if the journey takes more than 24 hours.
2. Excursionist—is a temporary visitor staying for a period of less than 24hours in the country visited.
(Including travellers on the cruises).
The drawback of the definition of a Visitor as per WTO is that it does not talk about the Visits made
within the country. For these purposes a distinction is drawn between a Domestic and an International
Visitor.
Domestic Visitor-A person who travels within the country he is residing in,outside the place of his
usual environment for a period not exceeding 12 months.
International Visitor –A person who travels to a country other than the one in which he has his usual
residence for a period not exceeding 12 months.
After we have discussed the definition of a visitor, tourist, and excursionist as per WTO and made a
distinction between a Domestic and an International Visitor, we now come to definitions used in India
for the purpose of collecting tourism statistics.
CHECK YOUR PROGRESS-III
1. From amongst the persons listed below who all are included in the definition of a Tourist?
a) Mr.Chand, a resident of Delhi goes for a two-day conference to Hyderabad
b) Ms. Rina, a resident of Mumbai goes for a heart transplant to America

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c) Ms. Mina, a resident of Delhi takes a flight for America and the flight has a stopover of 36 hours in
Singapore .Is she a tourist in Singapore?
Definitions followed in India
In relation to the definitions provided by the WTO, those followed in India are different in some ways.
International Visitor- has been defined as a person holding a foreign passport, visiting the country and
the main purpose of whose visit is other than the exercise of an activity remunerated from within the
country visited.
International Tourist-An international tourist has been defined as a person visiting India on a foreign
passport, staying at least 24 hours in India and the purpose of whose journey can be classified under one
of the following headings:
Leisure (recreation, holiday, health, study, religion and sport.
Business, Family, Mission and Meeting.
The following are not regarded as foreign tourists
i) Persons arriving with or without contract to take up an occupation or engage in activities remunerated
from within the country.
ii) Persons coming to establish residences in the country.
iii) Nationals of Nepal entering India through land-routes along India-Nepal border.
iv) All foreigners entering India from Bhutan by land and children aged less than three years.
Excursionist- he is a visitor staying less than 24 hours in the country including cruise passengers.
Cruise Passenger- he is a visitor who arrives in the country aboard cruise ships and who does not spend
a night in an accommodation establishment in the country.Domestic Tourist- A person who travels
within the country to a place other than his usual place of residence and stays at hotels or other
accommodation establishments run on commercial bases or in dharamshalas or stays with friends and
relatives and uses sightseeing facilities, or goes on a pilgrimage for a duration of not less than 24 hours
or one night and not more than 6months at a time for any of the following purposes:
Pleasure(holiday, leisure, sports and so on)
Pilgrimage, Religious and Social functions
Study and Health
The following are not regarded as domestic tourists:
Persons arriving with or without a contractto take up an occupation or engage in activities
remunerated from within the state centre.
Persons visiting their home town or native place on leave or a short visit for meeting relations and
friends, attending social and religious functions and staying in their own houses or with relatives and
friends and not using any sightseeing facilities.
Foreigners resident in India .
Here we observe that as per the Indian definition, a traveler must hold a foreign passport to be included
in the category of an International Visitor; this implies that Indians settled abroad and holding Indian
Passports will not be counted as International Visitors when they come to India for recreation, business
or other such purposes. However, nonetheless they are counted as Domestic Visitors and so here we see
that categorization is based on
nationality rather than place of residence. But as per WTO definition they should have been included in
the list of International Visitors. From this we can clearly see the difference in the Indian definition and
the one given by

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LESSON 2
TOURISM PRODUCTS:
A tourism product can be defined as the sum of the physical and psychological
satisfaction it provides to tourists during their travelling en route to the destination. The tourist product
focuses on facilities and services designed to meet the needs of the tourist. It can be seen as a composite
product, as the sum total of a country‘s tourist attractions, transport, and accommodation and of
entertainment which result in customer satisfaction. Each of the components of a tourist product is
supplied by individual providers of services like hotel companies, airlines, travel agencies, etc.The
tourist product can be analysed in terms of its attraction,accessibility and accommodation.
Attractions
Of the three basic components of a tourist product, attractions are very important. Unless there is an
attraction, the tourist will not be motivated to goto a particular place. Attractions are those elements in a
product which determine the choice made by particular tourist to visit one particular destination rather
than another. The attractions could be cultural, like sites and areas of archaeological interest, historical
buildings and monuments, flora and fauna, beach resorts, mountains, national parks or events like trade
fairs,exhibitions, arts and music festivals, games, etc.Tourist demands are also very much susceptible to
changes in fashion. Fashion
is an important factor in the demand for various tourist attractions and amenities. The tourist who visits a
particular place for its natural beauty may decide to visit some other attractions due to a change in
fashion.
Peter has drawn up an inventory of the various attractions which are of significance in tourism. These
are given below in a table:-
Inventory of Tourist Attractions Cultural: Sites and areas of archaeological interest, Historical
building sand Monuments, Places of historical significance, Museums,Modern Culture, Political and
Educational institutions,Religious Institutions
Traditions: National Festivals, Arts and Handicrafts, Music, Folklore,Native life and Customs
Scenic: National Parks, Wildlife, Flora and Fauna, Beach Resorts,Mountain Resorts.
Entertainment: Participation and Viewing sports, Amusement and Recreation Parks Zones and
Oceanariums, Cinemas and Theatres, Night Life and Cuisine.
Others: Climate, Health resorts or Spas, Unique characteristics not available elsewhere, the attractions
of tourism are, to a very large extent,geographical in character. Location and accessibility (whether a
place has a coastal or inland position and the ease with which a given place can be reached) are
important. Physical space may be thought of as a component for those who seek the wilderness and
solitude. Scenery or landscape is a compound of landforms;water and the vegetation and has an aesthetic
and recreative value. Climate conditions, especially in relation to the amount of sunshine, temperature
and precipitation (snow as well as rain), are of special significance.Animal life may be an important
attraction, firstly in relation to, birdwatching or viewing game in their natural habitat and secondly, for
sports purposes, eg. fishing and hunting. Man‘s impact on the natural landscape in the form of his
settlements, historical monuments and archaeological remains is also a major attraction. Finally, a
variety of cultural features-ways of life,folklore, artistic expressions, etc. provide valuable attractions to
many.
Accessibility

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It is a means by which a tourist can reach the area where attractions are located. Tourist attractions of
whatever type would be of little importance if their locations are inaccessible by the normal means of
transport. A Tourist in order to get to his destination needs some mode of transport. This mode maybe a
motor car, a coach, an aeroplane, a ship or a train which enables him to
reach his predetermined destination. If tourist destinations are located at places where no transport can
reach or where there are inadequate transport facilities,they become of little value. The tourist
attractions, which are located near the tourist-generating markets and are linked by a network of efficient
means of transport, receive the maximum number of tourists.
The distance factor also plays an important role in determining a tourist's choice of a destination. Longer
distances cost much more in the way of expenses on travel as compared to short distances. An example
can be that of India. About two and a half million tourist arrivals for a country of the size of India may
look rather unimpressive. However if one looks at certain factorslike the country‘s distance from the
affluent tourist markets of the world suchas the United States, Europe, Canada, Japan and Australia, one
may concludethat the long distance is one of the factors responsible for low arrivals. It costsa visitor
from these countries, quite a substantial amount, to visit India for a
holiday. It has been stated earlier that Europe and North America continue tobe the main generating and
receiving areas for international tourism,accounting for as much as 70% and 20% respectively, of
international tourist arrivals. Easy accessibility, thus is a key factor for the growth and development of
tourist movements.
Accommodation
The accommodation and other facilities complement the attractions.
Accommodation plays a central role and is very basic to tourist destinations.
World Tourism Organization in its definition of a tourist has stated that he
must spend at least one night in the destination visited, to qualify as a tourist.
This presupposes availability of some kind of accommodation. The demand
for accommodation away from one‘s home is met by a variety of facilities.
The range and type of accommodation is quite varied and has undergone considerable change since the
last half century. There has been a decline in the use of boarding houses and small private hotels. Larger
hotels are increasing their share of holiday trade, especially in big metropolitan area sand popular spots.
In more traditional holiday and sea-side resorts in Europe and elsewhere, big hotels are keeping their
share of holiday resorts. In recent has been an increasing demand for more non- traditional and informal
types of accommodation. The latest trends in accommodation are holiday villages. In recent years there
has been an increase in the popularity of such accommodation.Accommodation may in itself be an
important tourist attraction. In fact,a large number of tourists visit a particular destination or town
simply because
there is a first class luxury hotel or resort which provides excellent servicesand facilities. Some countries
like Switzerland, Holland, France, Austria, andBelgium have gained a reputation for providing excellent
accommodation withespecially the resort hotels, have gained a reputation for their excellentcuisine,
services and facilities. The French government for instance, paved the
way for tourist development of Corsica by launching a big hotel developmentprogramme.
Amenities
Facilities are a necessary aid to the tourist centre. For a sea-side resort,facilities like swimming, boating,
yachting, surf-riding, and other facilities likedancing, recreation and other amusements are important for
every touristcentre. Amenities can be of two types; natural, eg. beaches, sea-bathing,possibilities of
fishing, opportunities for climbing, trekking, viewing, etc. andman-made, eg. various types of
entertainment and facilities which cater to thespecial needs of the tourists. Excellent sandy beaches,
sheltered from sunshinewith palm and coconut trees and offering good bathing conditions form
verygood tourist attractions. Certain other natural amenities such as spaciouswaters for the purpose of
sailing, or the opportunities for fishing and huntingare also very important.

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CHECK YOUR PROGRESS 1
1) Name some ‗Tourist Products‘.
2) List some reasons why you would like to travel.
3) Put down five tourist destinations you would like to visit and describe how you would reach them.
4) What are the facilities you look for, in the places where you will stay on a holiday?
2.3 CHARACTERISTICS OF TOURISM PRODUCT
By now, you must have understood what a tourism product is. Now let us look at some of its
characteristics:-
1) Intangible
Unlike a tangible product, say, a motor car or refrigerator, no transfer of ownership of goods is involved
in tourism. The product here cannot be seen or inspected before its purchase. Instead, certain facilities,
installations, items of equipment are made available for a specified time and for a specified use. For
example, a seat in an aero plane is provided only for a specified time.
2) Psychological
A large component of tourism product is the satisfaction the consumer derives
rom its use. A tourist acquires experiences while interacting with the new environment and his
experiences help to attract and motivate potential customers.
3) Highly Perishable
A travel agent or tour operator who sells a tourism product cannot store it. Production can only take
place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted
or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit particular
place, the opportunity at that time is lost. It is due to this reason that heavy discount is offered by hotels
and transport generating organizations during off season.
4) Composite Product
The tourist product cannot be provided by a single enterprise unlike a manufactured product. The tourist
product covers the complete experience of a visit to a particular place. And many providers contribute to
this experience. For instance, airline supplies seats, a hotel provides rooms and restaurants,
travel agents make bookings for stay and sightseeing, etc.
5) Unstable Demand
Tourism demand is influenced by seasonal, economic political and others suchfactors. There are certain
times of the year which see a greater demand thanothers. At these times there is a greater strain on
services like hotel bookings,employment, the transport system, etc.
6) Fixed supply in the short run
The tourism product unlike a manufactured product cannot be brought to the consumer; the consumer
must go to the product. This requires an in-depth study of users‘ behavior, taste preferences, likes and
dislikes so that expectations and realities coincide for the maximum satisfaction of the consumer. The
supply of a tourism product is fixed in the short run and can
only be increased in the long run following increased demand patterns.
7) Absence of ownership
When you buy a car, the ownership of the car is transferred to you, but when you hire a taxi youbuy the
right to be transported to a predetermined destination at a predetermined price (fare). You neither own
the automobile nor the driver of the vehicle. Similarly, hotel rooms, airline tickets, etc. can be used but
not owned. These services can be bought for consumption but ownership remains with the provider of
the service. So, a dance can be enjoyed by viewing it, but the dancer cannot be owned.
8) Heterogeneous
Tourism is not a homogeneous product since it tends to vary in standard and quality over time, unlike a
T.V set or any other manufactured product. A package tour or even a flight on an aircraft can‘t be
consistent at all times. The reason is that this product is a service and services are people based. Due to
this, there is variability in this product. All individuals vary and even the same

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individual may not perform the same every time. For instance, all air hostesses cannot provide the same
quality of service and even the same air hostess may not perform uniformly in the morning and evening.
Thus, services cannot be standardized.
9) Risky
The risk involved in the use of a tourism product is heightened since it has to be purchased before its
consumption. An element of chance is always present in its consumption. Like, a show might not be as
entertaining as it promises to be or a beach holiday might be disappointing due to heavy rain.
10) Marketable
Tourism product is marketed at two levels. At the first level, national and regional organizations engage
in persuading potential tourists to visit the country or a certain region. These official tourist
organizations first create knowledge of its country in tourist –generating markets and persuade visitors
in these markets to visit the country. At the second level, the various individual firms providing tourist
services, market their own components of the total tourist product to persuade potential tourists to visit
that region for which they are responsible.
1) List out some things that you pay for that are intangible.
2) Write down all the components of a package tour that you read about in an advertisement for a
holiday.
Activity 1
Speak to some of your friends and ask them when they like to travel. See what the majority chooses as
the favorite time of the year.
Activity 2
Out of the list given below, write down those keywords which are not characteristics of a tourist
product: Perishable, Chemical, Transferable, Homogeneous, Seasonal, Psychological, Patent and
Marketable.
2.4 FORMS OF TOURISM PRODUCT
By now you must be aware of what a tourism product is and what its peculiar features are. It is
necessary to understand the components of the tourist product from the point of view of the consumer.
The product for the tourist covers the complete experience from the time he leaves home to the time here
turns. The tourist product today is developed to meet the needs of the
consumer and techniques like direct sales, publicity and advertising are employed to bring this product
to the consumer. The tourist product is the basic raw material, be it the country‘s natural beauty, climate,
history, culture and the people, or other facilities necessary for comfortable living such as water supply,
electricity, roads, transport, communication and other essentials.
The tourist product can be entirely a man-made one or nature‘s creation improved upon by man. A
consumer can combine individual products in a large number of ways. There would be many possible
destinations, each with a number of hotels, each to be reached by more than one airline. Thus, the
potential choice facing the consumer is very large. The large number of tourist destinations have placed
at the disposal of a tourist a very large variety of tourist products in abundant quantity from a large
number of competing destinations. This eventually, has led to the adoption of the new concept i.e., the
marketing concept in tourism by various countries promoting tourism.
Tourism, basically, is an infrastructure based service product. The nature of the service here is highly
intangible and perishable offering a limited scope for creating and maintaining the distinctive
competitive edge. The effective marketing of tourism needs constant gearing up of infrastructure to
international standards and presupposes in its coordination with the tourism suppliers. In strategic terms,
it calls for the action of an integrated approach to management and marketing. In operational terms, it
means the implementation of a better defined, better targeted market-driven strategy for realizing the
defined objectives.

11
The important point to note here is that marketing is applied to situations where the choice can be
limited to a relatively small number of brands giving the consumer a reasonable choice. The process of
selection thus becomes easier. In the field of tourism this process is taking place by the increased use of
‗package tours‘. A package tour is a travel plan which includes most elements of vacation, such as
transportation, accommodation, sightseeing and entertainment. The tourist product is a composite
product, whether it is sold as a package or assembled by the individual himself or his travel agent.
There are many tourism products that are available to the consumer today. In modern times these
products, whether traditional in nature like culture and pilgrimage, or modern like adventure,
conventions and conferences, health, medical, etc. are being packaged, promoted and priced
appropriately to woo as many tourists as possible. Tourism products can be classified as under for a
better understanding of each of their peculiar characteristics, so that they can be marketed and positioned
appropriately:
2.4.1 NATURAL TOURISM PRODUCTS
These include natural resources such as areas, climate and its setting, landscape and natural
environment. Natural resources are frequently the key elements in a destination‘s attraction. Let us look
at some examples:
1) Countryside
2) Climate- temperature, rains, snowfall, days of sunshine
3) Natural Beauty- landforms, hills, rocks, gorges, terrain
4) Water- lakes, ponds, rivers, waterfalls, springs
5) Flora and Fauna
6) Wildlife
7) Beaches
8) Islands
9) Spas
10) Scenic Attractions
The climate of a tourist destination is often an important attraction. Good weather plays an important
role in making a holiday. Millions of tourists from countries with extreme climates visit beaches in
search of fine weather and sunshine. The sunshine and clear sea breeze at the beaches have attracted
many people for a very long time. In fact, development of spas and resorts along the sea coasts in many
countries were a result of the travelers. urge to enjoy good weather and sunshine. In Europe, countries
like France, Italy,Spain and Greece have developed beautiful beach resorts. North Europeans visit the
Mediterranean coast searching for older resorts like Monte Carlo,Nice and Cannes on the Riviera and
new resorts in Spain and Italy. Beautiful beaches of India, Sri Lanka, and Thailand, Indonesia and
Australia and some other new destinations are more examples of how good weather can attract tourists.
All these areas capitalise on good weather.Destinations with attractive winter climates, winter warmth
and sunshine are also important centres of tourist attraction. Many areas have become important winter
holiday resorts attracting a large number of tourists.Around these winter resorts, winter sport facilities
have been installed to cater to the increasing needs of tourists. People from warm climates travel
especially to see snowfall and enjoy the cold climate.In countries with tropical climates, many upland
cool areas have been developed as ‗hill stations‘. Hence climate is of great significance as a tourism
product.
The scenery and natural beauty of places has always attracted tourists. Tourists enjoy nature in all its
various forms. There are land forms like mountains, canyons, coral reefs, cliffs, etc. One of the great all
time favourite tourist destination is the Grand Canyon, Arizona. Mountain ranges like the Himalayas,
Kilimanjaro, and Swiss Alps, etc. There are water forms like rivers, lakes waterfalls, geysers, glaciers,
etc. The Niagara Falls shared by Canada and the United States is an example of how scenic waterfalls
attract tourists. Lake Tahoe in California and the, deserts of Egypt are other examples of great tourist
products. Other great natural wonders that attract tourists are the Giants Causeway of Northern Ireland,

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the Geysers of Iceland, the glaciers of the Alps, the forests of Africa etc. Vegetation like forests,
grasslands, moors deserts, etc. has all been developed as tourist products.
Flora and Fauna attract many a tourist. Tourists like to know the various types of plants and trees that
they see and which trees are seen in which seasons. There are many plants which are specific to certain
regions and many times students and travellers visit those areas especially to see those
varieties of plants. Thick forest covers, attract tourists who enjoy trekking and hunting activities. Fauna
attracts tourists who like to watch birds, wild mammals, reptiles and other exotic and rare animals.
Countries in South East Asia have crocodile gardens, bird sanctuaries, and other tourist products that
display the fauna of their region.
Spas are gaining popularity as modern tourism products all over the world. While most parts of the
world have their own therapies and treatments that are effective in restoring the wellness and beauty of
people. New kinds of health tours that are gaining popularity are spa tours. Spas offer the unique
advantages of taking the best from the West and the East, combining them with the indigenous system
and offering best of the two worlds. For example Swedish massages work well with the Javanese
Mandy, lulur, aromatherapy,reflexology and traditional ayurvedic procedures. Now various spa products
are being combined with yoga, meditation, and pranayama, giving a holistic experience to tourists. Spa
treatments are now combined with other medical treatments to treat blood pressure, insomnia,
depression, paralysis and some other diseases. People are now travelling to spas and clinics for curative
baths and medical treatment. In some countries like Italy, Austria and Germany, great importance is
given to spa treatments. In Russia along the Black Seacoast and in the foothills of the Caucasus
Mountains, there are many worldfamous sanatoria where millions of Russians and international tourists
throng every year.
Beach tourism is very popular among the tourists today. Tourists of allage groups, backgrounds, cultures
and countries enjoy this tourism product. Besides attraction and salability, beach holidaying has lead to
overall development of tourism in many parts of the world. The basic importance of beaches is that they
provide aesthetic and environmental value of the beachsuch as beautiful natural scenery with golden
sands, lush green vegetation and bright blue sky. The water rocks. Beach tourism activities include water
and land resource use. The
water usage involves swimming, surfing, sailing, wind surfing, waterscootering, Para- sailing, motorboat
rides, etc. The land use has multifacetslike sunbathing, recreational areas for tourists (parks,
playgrounds, clubs,theatre, amusement parks, casinos, cultural museums, etc.), accommodation facilities
(hotels, cottages, villas, camping sites, etc.), car and bus parking areas, entertainment and shopping
complexes, access roads and transportation network. Due to its multidimensional requirements the beach
product needs special care. A beach resort needs to be developed as an integrated complex to function as
a self-contained community. Environmental management should also ensure the availability of
necessary infrastructure in the immediate hinterland to the coastal region in support of the development
on the coast to maintain its ecosystem. Islands abound with natural beauty, with the rare flora and fauna
and tribes. This makes islands an ideal place for adventure, nature and culture lovers to visit. This tourist
product has great scope as these islands are being developed as tourist paradises. For example, Hawaii,
Maldives, Mauritius,Tahiti, Andaman and Nicobar Islands, etc. has developed with tourism activity over
the past few decades. The topography is generally undulating and they offer natural scenic beauty with
exotic flora and fauna. Most of these islands have places of worship like churches, temples, etc. As an
added attraction some of these islands have developed as tax havens thereby encouraging commercial
development of these economies. They offer social and cultural attractions as tourists can experience the
local lifestyle, local food, fairs and festivals, etc.
Scenic attractions, like good weather, are very important factors in the development of tourism. Breath-
taking mountain scenery and the coastal stretches exert a strong fascination on the tourist the

13
magnificent mountain ranges provide an atmosphere of peace and tranquility. Tourists visiting the
northern slopes of the Alps in Switzerland and Austria and the southern slopes
in Italy and also the Himalayan slopes of India and Nepal for the first time, cannot but be charmed by
their physical magnificence.
2 MAN- MADE TOURISM PRODUCTS
Man- made tourism products are created by man for pleasure, leisure or business. Man- made tourism
products include:
a) Culture
 Sites and areas of archaeological interest
 Historical buildings and monuments
 Places of historical significance
 Museums and art galleries
 Political and educational institutions
 Religious institutions
Cultural tourism is based on the mosaic of places, traditions, art forms, celebrations and experiences that
portray the nation and its people, reflecting the diversity and character of a country. Garrison Keillor, in
an address to the1995 White House Conference on Travel & Tourism, best described cultural tourism by
saying, "We need to think about cultural tourism because really
there is no other kind of tourism. It's what tourism is...People don't come to America for our airports,
people don't come to America for our hotels, or the recreation facilities....They come for our culture:
high culture, low culture,
middle culture, right, left, real or imagined -- they come here to see America.Two significant travel
trends will dominate the tourism market in the next decade.
 Mass marketing is giving way to one-to-one marketing with travel being tailored to the interests
of the individual consumer.
 A growing number of visitors are becoming special interest travelers who rank the arts, heritage
and/or other cultural activities as one of the top five reasons for travelling.
The combination of these two trends is being fuelled by technology, through the proliferation of online
services and tools, making it easier for the traveler to choose destinations and customize their itineraries
based on their interests.
Today we can witness large masses of people travelling to foreign countries to become acquainted with
the usages and customs, to visit the museums and to admire works of art.
One way of hastening the beneficial effects resulting from tourism is to bring the cultural heritage into
the economic circuit, thus justifying the investments made at the cost of the national community, for its
preservation.Taking an economic view of the cultural heritage of a nation may not altogether be
justified, considering that the preservation of its culture is one of the basic responsibilities of any
community. But considering the financial obstacles especially for the developing countries, this may
appear to be a rational approach. Hence mass tourism can contribute unique benefits to the exploiting of
the cultural heritage of a nation and can serve indirectly to improve the individual cultural levels of both
citizens and travellers. Cultural resources have another specific characteristic, which many tourists want
to experience the exotic. There will be a great urge on the part of the tourist to visit and become
acquainted with the ancient civilization in their quest for novel human knowledge. Culture means the
prospect of contact with other civilizations, their original and varied customs and tradition with their
distinct characteristics. This entire process creates a powerful motivator towards travel.
Various Museums also attract tourists like Madame Tussauds Museum in London, the Louvre Museum
in Paris, Smithsonian Washington Museum,Museums of famous painters like Salvador Dali, Pablo
Picasso, Natural History Museum, British Museum, Museum of Modern Art are also popular tourist
products. Sites of archeological interest like remains of Mohenjodaro and Harrapan civilizations,
museums for fossils and dinosaurs. Sites for historical interest like city of Hiroshima and Nagasaki, sites

14
of holocaust in Germany, tombs of various leaders and emperors. Historical buildings like Warwick
Castle, Tower of London, Stratford-on-Avon which is Shakespeare‘s
birthplace, the Roman Baths are all popular with tourists. Even historical cities like Varanasi in India get
a lot of tourists due to its status as one of the oldest cities of the world. Stonehenge in United Kingdom,
The White House, Buckingham Palace and other places of political significance, are also great tourist
draws.
b) Traditions
 Pilgrimages
 Fairs and festivals
 Arts and handicrafts
 Dance
 Music
 Folklore
 Native life and customs
A pilgrimage is a term primarily used for a journey or a search of great moral significance. Sometimes,
it is a journey to a sacred place or shrine of importance to a person's beliefs and faith. Members of every
religion participate in pilgrimages. A person who makes such a journey is called a pilgrim. Secular and
civic pilgrimages are also practiced, without regard for religion but rather of importance to a particular
society. For example, many people throughout the world travel to the City of Washington in the United
States for a pilgrimage to see the Declaration of Independence and the Constitution of the United States.
British people often make pilgrimages to London to witness the public appearances of the monarch of
the United Kingdom. A large number of people have been making pilgrimages to sacred religious places
or holy places. This practice is widespread in many parts of the world. In the Christian world, for
instance, a visit to Jerusalem or the Vatican is considered auspicious. Among Muslims, a pilgrimage to
Mecca is considered a great act of faith. In India there are many pilgrimage centres and holy places
belonging to all major religions of the world.
India is among the richest countries in the world as far as the field of art and craft is concerned. Tourists
like to visit and see the creative and artistic treasures of various countries. Every country has certain
traditional arts like soap sculptures and batik of Thailand; gems and jewellery, tie and dye works, wood
and marble carving in Indonesia; ivory, glasswork, hand block inting,sandalwood, inlay work; are some
of the examples of traditional art that attract tourists.
There are many forms of dance in the world like Salsa, Hip- Hop, Jazz,Flamingo, Ballet and Traditional
Dances. People who travel like to watch these dance performances and sometimes even take some
introductory classes.
Music can be either traditional or modern. Traditional music like folk music and classical and country
music is specific to every region and country.
Modern forms include Blues, Rock, Pop, Jazz, Rap, Techno and Hip- Hop.Music also adds to the
attraction of a destination.
Fairs and Festivals capture the fun loving side and bring out the joyous celebrations of the community.
Festivals like Christmas, Easter, Thanksgiving,Eid, Ramadan, Diwali, and Holi and so on, also bring
people to destinations where the celebration can be enjoyed. Some popular Fairs which cater to fun and
work are Pushkar Mela in Rajasthan, Prêt fair in Paris, Magic Fair in
Vegas for garments, Hong Kong Fashion Week and various job fairs where people are recruited.
c) Entertainment
 Amusement and recreation parks
 Sporting events
 Zoos and oceanariums
 Cinemas and theatre
 Night life

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 Cuisine
Tourist products that have entertainment as their main characteristic are many. Just to name a few there
are amusement and recreational parks like Disneyworld in United States, Hong Kong, Paris, Singapore
and theme parks in various countries and cities like Appu Ghar and Fun and Food Village in Delhi,
Essel World in Mumbai and so on.
Tourists may come to attend sports events and it is also an opportunity to explore the country. The
fundamental concept is that all tourist activities have an influence on providing economic benefits and
have a powerful influence in some definite locality, like the Olympics in Athens has given
immense benefit to all in tourism business in Athens in particular and Greece in general. Many countries
organise year round sports events like swimming meets, athletic meets, weight lifting events, cricket
matches, baseball and football events and many more such events which encourage tourism. India will
be hosting the Common-Wealth Games on 2010 and it is anticipated to give the tourism industry a big
boost.
Night Life is one of the prime attractions in a holiday. Tourists like to especially visit areas in cities
where the night life activity is promoted. These areas are usually lit up with street stalls like flea markets
and food areas. Bars, night clubs, casinos and very often open air bands attract and add to the
psychological satisfaction and experience of tourists.
Cuisine is very often an understated but highly important part of any holiday. Now-a-days there is
cuisine from all areas of the world which is found at most tourist destinations. Specialty restaurants
serve Indian,
Continental, Chinese, Italian, Japanese, Thai, Indonesian, Fast food, Mexican,Mediterranean, and Arabic
and so on. However, tourists usually like to eat the local food of the areas they visit.
d) Business
 conventions
 conferences
People who travel in relation to their work come under the category of business tourism. However such
travel for business purposes is also linked
with tourist activity like visiting places of tourist attraction at the destination,sight seeing and excursion
trips. Business travel is also related to what is termed today as convention business, which is a rapidly
growing industry in hospitality and tourism.
A business traveller is important to the tourism industry as it involves the usage of all the components of
tourism. He travels because of different business reasons- attending conventions and conferences,
meetings,workshops etc. Participants have a lot of leisure time at their disposal. The conference
organisers make this leisure time very rewarding for participants by organising many activities for their
pleasure and relaxation. The spouses and families accompanying the participants are also well looked
after by the organisers. The organisers plan sight seeing tours and shopping tours for the participants and
their families. In India, cooking classes for learning Indian food cooking from the various states, visits to
the craft bazaars where tourists see how artisans make clay pots and other handicrafts, they visit tie and
dye units to see Indian printing eg. Batik printing etc. Women tourists enjoy henna demonstrations.
Conferences are events which require meticulous planning and efficient implementation, co-
coordinating various activities so that the right things happen at the right time. There are a number of
players in the convention business. On one hand are the customers or the consumers and on
the other hand are the principle suppliers like hotels, transporters, convention centres, tour operators and
travel agencies, tourism departments, exhibition organisers, sponsors etc.
2.4.3 SYMBIOTIC TOURISM PRODUCTS
Some tourism products do not fall into the above categories. Wildlife sanctuary, Marine parks, Aero
products and Water sports, Flower festivals are the example of tourism products which are a blending of
nature and man. Nature has provided the resource and man has converted them into a tourism product by
managing them. National parks for example, are left in their natural state of beauty as far as possible, but

16
still need to be managed, through provision of access, parking facilities, limited accommodation, litter
bins etc.
Yet the core attraction is still nature in this category of product. These products are symbiosis of nature
and man. In case of adventure sports tourists can be participants. The basic element of adventure is the
satisfaction of having complete command over one‘s body, a sense of risk in the process, an awareness
of beauty and the exploration of the unknown. Adventure tourism can be classified into aerial,water
based and land based.
Aerial adventure sports include the following activities-
A) Parachuting, which involves jumping off from an aircraft or balloon and descending by means of a
parachute. The infrastructure required,includes an aircraft, parachutes and large landing zones.
B) Sky Diving, which involves a sky diver jumping off an aircraft or balloon at a much greater height
without deploying his parachute initially and opening it after some interval at a pre determined height.
C) Hang Gliding, which involves running off a mountain or being towed by a winch and essentially
flying like a glider where the directional control is achieved by a shift in his own weight by the pilot.
D) Para Gliding, is the latest aero-sport which has taken the world by storm. A Para Glider is a
specially designed square parachute, along with a harness attached by lines.
E) Para Sailing is a simple sport that involves towing a parachutist to a height of a few hundred feet in
the air and then descending by means of a parachute. As a year round activity, Para sailing can be done
on land and water.
F) Bungee Jumping, which requires no equipment except a ‗bungee cord‘ made of nylon fiber of
enough elasticity to be able to absorb the shock at the end of the jump. The jumper makes a headlong
jump into empty space and the resultant rush of adrenalin makes the experience
very exhilarating.
G) Ballooning, where a balloon is attached to a basket by steel wire ropes. By regulating hot and cold
air, the pilot can steer the balloon along any charted course.
Water based adventure sports include the following-
A) White water rafting which is one of the most important and exciting water sports, which involves
riding down water rapids in an inflatable raft which is used to negotiate fast flowing rivers.
B) Canoeing and Kayaking are adventure sports which begin upstream where the water is wild and
white. The gradient best suited for canoeing is the stage near the river‘s entry into the plains where the
trip can be combined with a natural holiday in a forest. Kayaking is appealing as it enables innovation
on the river by one or two oarsman seated in tandem.
C) Adventure sports in the waters of the sea like wind surfing, scuba diving, snorkeling, yachting, water
skiing, etc. also offer thrilling activities to the tourists.
Land based adventure tourist products include the following-
A) Rock climbing which originated as a means of practicing techniques for ascending high mountains.
It was earlier provided as training to mountaineers but has now evolved into a highly developed sport.
The climber moves up, using knowledge of rope handling, climbing, securing one to another, etc. Very
sophisticated techniques and equipments are used nowadays to ascend or descend on very steep terrain.
B) Mountaineering requires trained physical ability and suitable equipment. The higher peaks need
better equipment which is also costly. The challenges which mountains like the Indian Himalayas
pose attract mountaineers from various countries.
C) Trekking the mighty Himalayas which spread across five Indian states form a sweeping arc and
compress in its expanse a wide geographical variety and contrasting cultures.
D) Skiing is the practice of sliding over snow on runners, called skis, attached to each foot. There are
three types of ski resorts, the first are large towns, second type are alpine villages and the third resorts
built for skiing.
E) Heli skiing is a type of alpine skiing where the skier is dropped to the top of a mountain by a
helicopter and then he slides down on his own.

17
F) Motor Rally is a sport that tests the navigational skills of man and his endurance with the machine.
Motor rallies, grand prix racing, hill climbing rallies, vintage car rallies, sports car racing, etc. are some
forms of this tourism product.
G) Safaris were earlier taken on camel, horse and elephants as an excursion for hunting or a journey. As
a modern tourist product now safaris are taken on jeeps and in the form of caravans. Viewing and
enjoying nature, meeting the local villagers, seeing their traditions, customs and lifestyle, entertainment
and camp fires are some of the characteristics of modern safaris. Eg, Egypt desert safaris. Horse and
elephant safaris are arranged in most of the national parks and wildlife sanctuaries.
2.4.4 EVENT BASED TOURISM PRODUCTS
Where an event is an attraction, it as an event based tourist product. Events attract tourists as spectators
and also as participants in the events, sometimes for both. The Ocktoberfest organised in Germany,
Dubai and Singapore shopping festivals, the camel polo at Jaisalmer, Kite flying in Ahmedabad attracts
tourists, both as spectators and participants. Whereas in case of the Snake Boat race of Kerala can be
enjoyed witnessing it.
Event attractions are temporary, and are often mounted in order to increase the number of tourists to a
particular destination. Some events have a short time scale, such as the Republic Day Parade, others may
last for many days, for example Khajuraho Dance Festival or even months like the Kumbh Mela. A
destination which may have little to commend it to the tourist can nevertheless succeed in drawing
tourists by mounting an event such as an unusual exhibition.
2.4.5 SITE BASED TOURISM PRODUCTS
When an attraction is a place or site then it is called a site based tourist product. Site attractions are
permanent by nature, for example Taj Mahal, The Great Wall of China, The Grand Canyon in Arizona,
Eiffel Tower, Statue of Liberty, Temples of Khajuraho, etc. A site destination can extend its season by
mounting an off season event or festival. A large number of tourists are attracted every year by the great
drawing power of Stratford on Avon in England because of its association with Shakespeare, the city of
Agra in India with its famous Taj Mahal, Pisa in Italy for its famous Leaning Tower. Some new features
have been added to the same product to keep the tourist interest alive in the products. For example now
visitors can see Taj by night, music shows have been organised with Taj as the backdrop so that there
are repeat tourists.
2.4.6 OTHER TOURISM PRODUCTS
Health Tourism
Holidaying is generally considered as an investment in health, a subject that presents opportunities of
cost- benefit analysis. The medical expertise of various countries has added a new product to the
existing tourism products.
People are travelling to various countries for treatment of various ailments and medical procedures like
Cardio care, Bone Marrow Transplant, Dialysis and Kidney transplant, Neuro surgery, Joint
Replacement Surgery, Urology, Osteoporosis, and numerous other diseases. Even cosmetic surgery,
alternative medicines like homeopathy, acupressure, ayurvedic medicines and naturopathy are also
becoming tourism products wherein travel companies are offering Yoga and Rejuvenation packages.
Tourists travel for what is illegal in one's own country, e.g. abortion, euthanasia; for instance, euthanasia
for noncitizens is provided by Dignitas in Switzerland. Tourists travel also for advanced care that is not
available in one's own country, in the case that there
are long waiting lists in one's own country or for use of free or cheap healthcare organisations.
Eco-tourism
Tourism that combines local economic development, protection of the quality of the environment and
promotion of the natural advantages and the history of an area. The combination of all or some of the
above mentioned kinds of tourism could contribute significantly to the development of tourism in any
country. The availability of tourist packages involving gastronomy, entertainment and information about

18
the cultural wealth of a country should be regarded as a priority issue for tourist agents, as it will reduce
the concentration of tourist activity in certain areas and will improve and enrich the tourist.
Rural Tourism
Any form of tourism that showcases the rural life, art, culture and heritage at rural locations, thereby,
benefiting the local community economically and socially as well as enabling interaction between the
tourists and the locals for amore enriching tourism experience an be termed as rural tourism. It is
multifaceted and may entail farm/agricultural tourism, cultural tourism, nature tourism, adventure
tourism, and eco- tourism. The stresses of urban lifestyles have lead to this counter- urbanisation
approach to tourism. There are various factors that have lead to this changing trend towards rural
tourism like increasing levels of awareness, growing interest in heritage and culture and improved
accessibility and environmental consciousness, Tourists like to visit villages to experience and live a
relaxed and healthy lifestyle.
Ethnic Tourism
Ethnic tourism is travelling for the purpose of observing the cultural expressions of lifestyles of truly
exotic people. Such tourism is exemplified by travel to Panama to study the San Blas Indians or to India
to observe the isolated hill tribes of Assam. Typical destination activities would include visits
to native homes, attending traditional ceremonies and dances, and possibly participating in religious
rituals.
Senior Citizen Tourism
A newly emerging trend in tourism, basically for senior citizens or old people who live in isolation,
especially in the west, because of daily busy schedules of their children and more importantly the
attitudes. The characteristic feature of this type of tourism is that the senior people are less demanding in
the form of facilities and services, besides leaving minimum impact on the destination community and
their main consideration is on personalised service.
Spiritual Tourism
Many people when living under conditions of stress turn to spirituality. The Eastern world is considered
to be very spiritual with many of the new age Gurus and their hermitages. This takes the form of another
tourism product, that is, spiritual tourism. Tourists visit places to attend spiritual discourses and
meditation workshops. For example, The Osho Foundation, Art of Living Foundation which have
centres all over the world, Buddhist Monasteries and Ashrams.
Golf Tourism
Golf has been enjoyed by many for a long time. Earlier it was enjoyed as a sport but in recent times it
has developed into a hot tourism product. Many tourist organizations plan promotional packages to woo
the golf tourist especially from Japan where the green fees are very high. These tourists take exclusive
golfing holidays wherein their accommodation is also arranged near the course and they return after
serious golf playing.
1) Name some of the well known Tourist Places.
2) List out the various climates and the related tourist activities.
3) Divide the following into land, water and aerial Adventure Sports,Parachuting, Safaris, Snorkelling,
Yachting, Sky Diving, Trekking,Water Rafting, Hand Gliding, Skiing, Bungee Jumping.
SELF ASSESSMENT QUESTIONS
1) Describe the various characteristics of a tourism product.
2) With the help of examples distinguish between Natural and Man-Made Tourist Products.
3) Write a short note on Cultural Tourism.
4) Briefly discuss the inter relationship between all the various forms of tourism products.
5) Identify some tourist products that are Event based and Site Based.
6) Identify which keywords do not belong to this lesson.

19
Keywords: Mountains, Earthquake, Dance Festival, Guide, Olympic-Games, Advertising, Cosmetic
Surgery, Scuba Diving, Tickets.
LESSON 3
TOURISM AND ECONOMY
TOURISM: AN INDUSTRY
Tourism industry is the one that deals with the tourists as consumers, the money spent by them, and the
resources rendering various goods and services which facilitate the composition of the tourism product.
This industry has-been named as a ‗smokeless industry‘ because unlike other industries it is invisible
and non-polluting. The tourism industry is an extraordinarily complex integration of many industries
spread over many sectors. Tourism is an umbrella industry containing a set of inter-related business
participants. For example, industries like Transport (Air, water and surface), Accommodation (Hotels,
Motels, and Supplementary Accommodations), and Travel Companies, (Tour Operators/ Travel Agents),
Recreation and Entertainment Institutions, Handicrafts business, etc and the provision of the many
goods and services demanded by tourists. Interestingly, most of the component industries also get
related to varied commercial and non-commercial activities over and above providing their services to
the tourists. A simplistic structure of the tourism industry can be suggested by way of a framework as in
the following
illustration.

20
Source: .Kamra, K.K:M.Chand, 2006.Basics Of Tourism-Theory, Operation And Practice,Kanishka
Publishers
Over the years, there has been a growing awareness of tourism as a human activity, an industry, and a
catalyst for economic growth and development. Like any other industry the tourism industry draws
resources from the economy, adds value and produces marketable products. The only difference here is
that no tangible product is produced like in the case of a manufacturing industry. The product in this
case, as we have already discussed in the previous lesson, is intangible and joint or composite in nature.
The tourism industry impacts various auxiliary (specific) and ancillary (general)industries as well.
Tourism today is undergoing a rapid transformation towards a new industry having far-reaching
implications for organizations in the travel and tourism industry in particular, and consequences of
import for developing and developed countries in general, growing increasingly dependent on the tourist
dollar.
The forces driving the change in this industry are many. In olden times people travelled mainly for
commercial and religious reasons and leisure travel was for the rich. Today people travel for a variety of
motivations, including business, leisure, religion, culture, visiting friends and relatives,education and
health. The means of transportation have become varied and faster and as the transport becomes faster,
new travellers emerge and people travel greater distances. Another important force driving the growth

21
within the industry is the growth and expansion of the middle class and an increase in their disposable
income.
The travel industry is complex in nature and challenging to manage.This is for three main reasons- their
process type, cost structure and market features. In terms of process, most operations are a combination
of customer processing operations, material processing operations and information processing
operations. There is a mix of cost structures based around provision of service, food, accommodation,
sightseeing, airfare etc. Forecasting and packaging are some key market features.
Originally segmentation in the industry was based on social class however, currently many factors
influence segmentation in the industry. Now there are products that are specially marketed to specific
groups of people or market segments based on lifestyle. Due to segmentation more choice is created for
consumers and branding has emerged, major companies are developing brands that are easily
recognizable, for example, Thomas Cook holidays, Star Cruises, etc.
Tourists are now a sophisticated lot. They are demanding and constantly looking for new variations in
the products and newer destinations. In addition, there is growing environmental awareness and
travellers are increasingly prepared to shun over-commercialized and polluted destinations for newer
and less popular ones. Parallel to all these changes in the marketplace, there is deregulation of the airline
industry, an explosion of technology both for automated reservations and for travel management, and an
increasing trend towards concentration of the industry reflected by the large numbers of mergers,
takeovers and acquisition of the industry from ‗old‘ to ‗new‘ tourism.

22
Source: .Kamra, K.K:M.Chand, 2006.Basics Of Tourism-Theory, Operation And Practice,Kanishka
Publishers
New tourism is a transition from the existing to the tourism of the future typified by
 Flexible tourist products
 Segmentation
 Enhanced tourism experiences
 Thrust towards diagonally integrated organizations and
 Management of the tourist industry
There are clear and apparent manifestations that the tourist industry is beginning to take on newer
dimensions. The emerging new practice is the creation of a number of factors including the system of
new information technologies in the tourism industry, deregulation of the airline industry,
environmental pressures; technology compensation; changing consumer tastes, leisure time, work
patterns and income distribution.
The economics of new tourism is quite different from the old. From system gains, segmented markets,
designed and customized holidays the focus now is also on, profitability and competitiveness in tourism.
The new tourists show greater care and have a concern for conservation of the natural
environment. There has been a shift towards eco tourism, green tourism, rural tourism, farm
tourism, sustainable tourism, etc. with perpetual opportunities of
benefit from this new tourism.
Competitive Strategies for success have to be employed today for survival. There are new techniques
and trends to be followed by the industry players. To gain competitive advantage, the players and
participants of the industry will have to
 be customer friendly,
 be quality conscious,
 innovate new and better products,
 make meaningful value additions.
And for tourist destinations to be competitive, certain key principles need to be incorporated into the
policy framework. Some of these are
 be environmentally sensitive,

23
 make tourism a leading sector,
 strengthen the distribution channels in the market place,
 encourage private sector participation.
Today tourism is sensitive to the environment as well as inhabitants of the region or area, tourism is
sustainable, and tourism is capable of transforming tourism-dependent and vulnerable areas‘
economies into viable entities. Tourism is in a stage of revolutionary change and a new kind of tourism
is emerging fast. New tourism promises flexibility, segmentation and diagonal
integration. It is driven by information technologies and changing consumer requirements. Today this
industry can produce an entire system of value addition and wealth generation. The objective today is
‗tourism should be planned in a manner that it benefits the community as a whole, has benefits for the
locals, and optimizes the expectations of the tourists besides taking care of the environment.‘
Tourism is a growth industry
In the 21st century the global economy will be driven by three major service industries – Technology,
Telecommunications and Tourism. Travel and tourism will be one of the world‘s highest growth sectors
in the current century. Tourism, according to experts is expected to capture the global market and
become the largest industry in the world. The statistics and projections point to an era of unprecedented
growth of tourism around the world. From 70 million international tourist arrivals in the year 1960 the
WTO has estimated that international tourism arrivals worldwide would be 1.5 billion by the year 2020.
According to the latest report from the World Travel and Tourism Council (WTTC) ―in the year 1999
Travel and Tourism generated about 3.5trillion US dollars of GDP and almost 200 million jobs across
the world economy: approximately. World travel and tourism GDP is forecast to increase in real terms at
3% per annum in the decade 2000-2010. During the same period employment in travel and tourism is
expected to grow at about2.6% per annum.‖ World Travel and Tourism Council has summarized some
of the highlights concerning worldwide travel and tourism industry as follows:
 The Travel and Tourism Industry contributed 11.7% towards world GDP in 1999;
 Travel and Tourism has emerged strongly from the South- Asian crisis with leisure tourism
rising by 4.7% in 1999 and business travel by4.4%;
 Tourism related spending by international visitors amount to 8% of world exports in 1999 with a
further impact by export of Travel and Tourism related goods;
 Travel and Tourism related GDP is forecast to increase at 3% per annum in real terms;
 In the coming years, over 8% of all jobs worldwide will depend upon Travel and Tourism;
 Travel and Tourism will support the creation of over 5.5 million jobs per year over the next
decade.
Thus, tourism today is a shining sector and a great economic force. Its status as a major economic
activity has been recognized by almost all the nations of the world.
During the 1960s there was emphasis on tourism as an earner of foreign exchange, a catalyst of
development, and a security against the uncertain fluctuations of commodity prices. Today however, its
impact is not only economic but social and cultural as well. Cultural tourism is a fertile ground for
exercising creative talents, fostering special kinds of relations between visitor and the host populations.
It enables the tourist to form a view of his present world and a global concept of the historic past. Thus,
tourism has wider implications encompassing not only economic benefits but also social and cultural
benefits as well.
1) List out all the participants in the tourism industry.
2) Write down five reasons which motivate people to travel today as opposed to olden times.
3) Pick out the keywords that describe the tourism industry.
Smokeless, complex, frivolous, inward- looking, growth oriented,flexible, heavy, catalyst, hazardous,
technical, isolated, customer friendly.
3.3 TOURISM AND DEVELOPMENT

24
Development can be viewed from various dimensions, however, for the purpose of this current lesson,
we use the following definition of economic development: Economic development is a process of
economic transition that involves the structural transformation of an economy and a growth of the real
output of an economy over a period of time. It is a long run concept. Structural
transformation is achieved through modernization and industrialization and is measured in terms of the
relative contribution to gross domestic product of agriculture, industry and service sectors. The potential
of tourism to contribute to development is widely recognized in the industrialized countries, with
tourism playing an increasingly important role and receiving government support. Tourism along with
some other activities like financial services and tele-communications is a major component of economic
strategies. Tourism has become a favored means of addressing the socio- economic problems facing
rural areas on one end, while enhancing development of urban areas on the other.
Tourism and National Development
Tourism emerged as a global phenomenon in the 1960s and the potential for tourism to generate
economic development was widely promoted by national governments. They appreciated that tourism
generated foreign exchange earnings, created employment and brought economic benefits to regions
with limited options for alternative economic development. National tourism authorities were created to
promote tourism and to maximize international arrivals. However, an awareness of the negative
environmental, social and some other impacts also increased. The importance of economic benefits at
the local level, environmental and social sustainability was also widely accepted. It was observed that
tourism presents excellent opportunities for developing entrepreneurship, for staff training and
progression and for the development of transferable skills. Tourism development focuses on national
and regional master planning. It also focuses on international promotion, attracting inward investment.
The primary concern has been with maximizing foreign exchange earnings. These earnings enable the
government to finance debt and also to finance some investment in technology and other imports for
economic development.
No trade barriers to tourism
Unlike many other forms of international trade, tourism does not suffer from the imposition of trade
barriers, such as quotas or tariffs. Mostly, destination countries have free and equal access to the
international tourism market. This position has become strengthened by the inclusion of tourism in
the General Agreement on Trade in Services, which became operational in January 1995.
Redistribution of wealth
Both internationally and domestically, tourism is seen as an effective means of transferring income,
wealth and investment from richer, developed countries or regions to less developed, poorer areas. This
redistribution occurs as a result of both tourist expenditures in destination areas and also of
investment by the richer, tourist generating countries in tourist facilities. Thus it appears as if, the
developed countries support the economic growth and development of less developed countries.
Tourism and Poverty Reduction
Tourism can contribute to development and the reduction of poverty in a number of ways. Economic
benefits are generally the most important element, but there can be social, environmental and cultural
benefits and costs as well. Tourism contributes to poverty reduction by providing employment and
various livelihood opportunities. This additional income helps the poor by increasing the range of
economic opportunities available to them. Tourism also contributes to poverty alleviation through direct
taxation of tourism generated income. Taxes can be used to alleviate poverty through education, health
and infrastructure development. Some tourism facilities also improve the recreational and leisure
opportunities available for the poor themselves at the local level.Tourism is not very different from other
productive sectors but it has four potential advantages for pro-poor economic growth:
- It has higher linkage with other local businesses because customers come to the destination;
- It is relatively labour intensive and employs a large proportion of women workers;
- It has high potential in poor countries and areas with few other competitive exports;

25
- Tourism products can be built on natural resources and culture, which might sometimes be the only
assets that people have.The contribution of tourism to the local economy is also important to note. It has
five kinds of positive economic impacts on livelihood, any or all of which can form part of a poverty
reduction strategy:
- wages from formal employment
- earnings from selling goods and service or casual labour
- dividends and profits arising from locally owned firms and business units
- collective income which may include profits from a community run enterprise, land rent, dividends
from joint ventures. These incomes can provide significant development capital and provide finance for
corngrinding mills, a clinic, teachers housing and school books
- infrastructure gains, for example, roads, water pipes, electricity and communications.
At this point it must also be mentioned that there are some disadvantages of tourism as well. For
example, leakages (which you will read about in the next section) and volatility of revenue. These are
also common to other economic sectors. However, tourism may involve greater trade-offs with local
livelihoods through more competition for natural resources, particularly in coastal areas.
3.4 STRATEGY FOR DEVELOPING COUNTRIES
Tourism plays a very important role in the economies of many countries. Earnings from tourism-related
activities contribute a considerable portion to their GDPs. Tourism is now being viewed as a significant
tool and an important strategy in achieving economic growth in these countries.
The WTO is convinced that tourism has considerable potential for growth in many developing countries
and Less Developed Countries (LDCs) where it isa significant economic sector and promising high
growth rate; and that it has advantages when compared with other economic sectors. This case can be
summarized as follows:
Comparative Advantages of Tourism as a Development Strategy for Developing Countries.
1. Tourism is consumed at the point of production. This results in great opportunities for individuals and
micro-enterprises, in urban or marginal rural areas, to sell additional products (e.g., handicrafts
and souvenirs) or services (e.g. guiding or music) to the potential consumers.
2. Access to international markets is a serious problem for developing countries particularly in
traditional sectors like food, agriculture and textiles where they confront tariff and non-tariff barriers.
This is not the case for the tourism sector, where barriers would involve visa restrictions and related
taxes only. The example of Cuba is instructive in this regard. Whilst Cuba has struggled to find export
markets for its sugar and tobacco, it has been much more successful in maintaining a dynamic tourism
industry.
3. Most export industries depend on financial, productive and human capital. The tourism industry not
only depends on these, but also on natural capital (e.g. wildlife, scenery and beaches) and culture
(folkdances, music, and handicrafts), which are sometimes the only assets owned by the poor.
4. Tourism has particular potential in many countries with few other competitive exports.
5. Tourism is a much more diverse industry than many others and can build upon a wide resource base.
This diversity results in wider participation of the informal sector, for example a farming
household produces and sells local handicrafts.
6. Tourism is often reported to be more labour intensive than other productive sectors. Data from six
countries with satellite tourism accounts does indicate that it is more labour intensive than non-
agricultural activities, particularly manufacturing, although less labour intensive than agriculture.
7. Tourism provides various employment opportunities especially to women as compared to some of the
other sectors. (The percentage of female employment varies enormously in each country, ranging from
over 60% in Bolivia to less than 10% in some Muslim countries).
8. In many developing countries, for example South Africa, China, Philippines and India, domestic
tourism is growing rapidly and like international tourism brings relatively wealthy consumers to areas

26
where they constitute an important local market. Domestic tourism can be accessed by people with
lower budgets and is often equally valuable to the economy.
Perceived Disadvantages of Tourism as a Development Strategy
1. Foreign private interests drive tourism and it is difficult to maximize local economic benefits due to
the high level of foreign ownership, which means that there are high levels of leakages and few local
linkages. But that might not be the case many times.
2. Many small enterprises and individual traders sustain themselves around hotels and other tourism
facilities and these small companies are not foreign owned. There is often confusion about levels of
foreign ownership as local ownership is often masked by franchise agreements and management
contracts. WTO is studying this issue in collaboration with UNCTAD as part of its poverty elimination
research.
3. Tourism can impose substantial non-economic costs on the poor. For example, loss of access to
resources (particularly beaches),displacement from agricultural land, social and cultural disruption and
exploitation.
4. Many forms of development bring with them disadvantages that need to be managed. The economic
and non-economic negative impact needs to be determined and the issues addressed. It is for this reason
that the WTO supports a holistic livelihood approach to assessing the impact of tourism-positive and
negative – on the poor. Issues like environmental management and planning at local level need to be
addressed through the good governance agenda.
5. Tourism is a vulnerable industry. It reacts immediately to factors like changes in economic conditions
in the originating markets, levels of economic activity in tourism in the destination markets. Thereby
affecting international visitor arrivals. It is also very vulnerable to civil unrest, crime, political instability
and natural disasters in destination countries.
6. It has been observed that the volatility of export markets for tourism is not significantly greater than
other commodities. Many times tourism has the advantage noted above that it is not subject to tariff or
other non-tariff barriers and that the destination has some control over civil unrest, crime and political
instability
7. Tourism requires highly sophisticated marketing. International tourism marketing is expensive,
although there are more efficient and less costly forms of marketing available today. Many government
agencies at the national level, tie ups of domestic hotels and resorts with international participants, word
of mouth publicity, target marketing are some of the methods used.
Tourism in many developing countries and many LDCs has been growing strongly in recent years and
there are strong reasons to think that these trends will continue. Many developing countries have
comparative advantages in tourism where tourism constitutes one of their better opportunities for
development. The disadvantages, which are often identified in relation to international tourism in
developing countries, are few when tourism is compared with other sectors of the economy. WTO
believes that tourism is considered alongside other industries as a development option and that where
tourism presents the best opportunity for local economic development and antipoverty strategies,
development banks, bilateral and multilateral development agencies should back it with determination.
1) Give two examples of the natural capital of a country.
2) List some ways in which a poor family can earn money from tourist related activities.
3.5 LINKAGES AND LEAKAGES
The term leakage in used to refer to the amount spent on importing goods and services to meet the needs
of tourists. Leakages take place across national boundaries that can have impact on the balance of
payments of the countries. It results from the economic exchange between the two countries. It also
occurs when the local economy is unable to provide reliable, continuous, supplies on the basis of

27
competitive prices of the required product or service and of a consistent quality to meet the market
demand. From a tourism and poverty perspective it is generally more productive to focus on the other
side of the coin-linkages. When the local economic linkages are weak, the revenue received from
tourism in the local economic area leaks out. In order to reduce such leakages, it becomes necessary to
deliver consistently at an appropriate quality and at competitive prices, at the same time, engaging the
local suppliers who use local capital and resources.
Leakages:
From the perspectives of local economic development and poverty reduction, we are not concerned how
much a tourist spends outside the country, but how much he is not spending in the local economy, which
means, limiting the benefit to local communities and the poor among them.
Leakages, which have negative impact on the development of local tourism, are:
 Impact skills, expatriate labour
 Imported commodities, goods and services
 Imported technology and capital goods
 Increased oil imports
 Repatriation of profits
 Advertising and marketing efforts abroad
 Transporting tourists to the destination country
However developing local sources of supply, encouraging local ownership and enhancing linkages to the
local economy can improve this. The last two of these can create more jobs and opportunities forsmall
and medium enterprises (SMEs) at the same time.
Linkages
There are many ways in which local communities can be benefitted by these propositions. The best way
is to increase the extent of linkages between formal tourism sector and the local economy. By formal
tourism sector we mean hotels, restaurants, lodges, and tour and transport agencies. To the extent
linkages to the local economy can be increased, the extent of leakages will be reduced. The increased
integration can further develop strong linkages between tourism and other economic sectors. Not only
do agriculture, fisheries, manufacturing, construction and domestic industries get integrated, the
auxiliary and ancillary industries are also strengthened. This in turn provides additional revenue and
jobs, which reduces the import content and foreign exchange leakages from the tourism industry.
Government and development agencies should create local linkages as part of their overall tourism
development strategy in the planning, construction and operational phases. There are three sets of
factors, which are important in enhancing the extent of local linkages:
 The creation of employment at all skill levels and particularly where there is existing capacity.
 The Anti-poverty tourism development strategies have suggested ‗new attractions‘. The tour
operators at the ground level should integrate these. The critical areas include creating mutually
beneficial business linkages between the formal and informal sectors. Small and emerging
entrepreneurs are often neglected. Local government should ensure that microenterprises and
emerging entrepreneurs are promoted while taking local tourism marketing initiatives. Visitor
attractions, parks, cultural sites and hotels should be encouraged to provide information about
local products and services provided by the poor.
 There is need to understand tourist expectations thoroughly.
Also, small enterprises to meet the credit needs and marketing needs are also required. Small enterprises
sometimes face difficulties in meeting the requirements of health and safety, licensing and other
regulatory requirements. There is a need to systematically educate and train the poor in such a way that
they are able to integrate themselves with the growing requirements relating to regulations.
The local market should be geared up to deliver qualitatively reliable and competitive goods and
services to tourists. The local business community should be actively involved in the process through
partnership approaches. This requires continuous efforts, which is possible through long-term

28
partnership to benefit from linkages. Once planning commission concessions are being granted, private
sector companies can be asked to make the development of such linkages part of their bid.
Tourism can help in diversifying other sectors of the local economy and can create new ones, offering
additional community livelihood opportunities. Local economic benefits and ownership are
likely to be greater, if local communities participate in diversified business activities. Now with the
growing awareness governments are adopting policies, to encourage and facilitate participation by the
local communities. The participation by the poor in the development of tourism projects may result in
increasing employment and growth of complementary products.
These benefits can further be maximized through partnership sat the destination level. There is a
tremendous possibility of bringing about sustainable development for the local economy if Hotels
and tour operators work together with local communities, local government and NGOs. This can
help in reducing poverty and can provide a richer experience to domestic and international
tourists. Such partnerships will benefit both the host communities and the tourism industry. This
will also help them earn more tourism dollars, euro‘s or pounds without any leakages. This can further
be utilized for community development. Through affirmative policies, enterprises can on tribute
significantly to economic development, in both their constructional and operational phases.
Some practical strategies for developing local economic linkages are discussed below:
1. Market Access and Enclave Tourism
There is practically no link between local people and tourism market. Tourists are not accessible to the
local community when they are within their hotels, coaches, and safari vehicles or inside sites and
attractions such as museums. These are all enclave forms of tourism. The local community people who
wish to sell their products to tourists don‘t have access to them. They end up hawking and touting at
entry points. The problem is still more difficult in case of Cruise ship passengers and tourist on "all
inclusive" hotel or resort packages where local entrepreneurs hardly interact with them. Access to the
market plays major role in involving entrepreneurs in the tourism industry. This is particularly true in
the case of the informal sector; where the return on local skills and services is often maximized and
where the scale of capital investments is low. There is a need to keep this aspect in mind at the time of
tourism planning, as access to tourists for the informal sector is often neglected.
Some tourists prefer all-inclusive packages, as they do not always feel safe in a new destination and are
happier in a protected environment. They feel protected from the poverty and hassle from
beggars, touts and hawkers in some destinations. But there is a way to solve this problem. This requires
partnership approach between Hotel and informal traders. This allows informal traders to provide such
an environment where tourists feel secure in moving beyond the enclave and to approach ―hassle-free‖
crafts markets. Local guides can also help in establishing contact between tourists and traders by rotation
for which they may have agreement among themselves. This also requires observing certain code of
conduct by the local traders and guide.
There should be a design to link the informal sector with formal sector so that poor members of
community can be helped and tourist market becomes accessible to them. This can help them gain the
economic benefit from it.There are a number of strategies that can be used to enhance overall economic
benefits and can further reduce poverty.
2. Growth and Selection: Attracting more of the most appropriate market Segments

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